What Is a Clue Report and How Does It Show Damage History?

LexisNexis, a consumer reporting agency, compiles the information from data submitted by insurance companies. When a claim is filed, your insurer typically reports the details to the CLUE database. The report is then used by insurers to evaluate risk during the underwriting process. This evaluation influences the terms and cost of your policy. Prospective homebuyers can also request a report to check a property's history before making an offer.

Water damage claims are clearly categorized, which can include plumbing leaks, appliance failures, or weather-related flooding. The report notes whether the claim was for interior water damage, roof leaks, or sewer backups. Even small, paid claims may appear. This record helps an insurer gauge the likelihood of future moisture problems in the home's structure.

• Plumbing supply line or drain failures
• Leaks from water heaters or washing machines
• Storm-related roof leaks and resulting interior damage
• Sewer or drain backup incidents
• Flooding from broken pipes or appliance overflows
• Claims for mold remediation linked to a water loss

Multiple claims, especially for water, can make insurers hesitant to offer coverage or may lead to higher premiums. A clean report suggests a lower risk property. For sellers, a history of claims may require more disclosure and could affect the sale price. It is a key document in the financial and risk assessment of any real estate transaction.

• Insurers may view multiple water claims as a red flag
• Premiums can increase based on the frequency and severity of past claims
• Some insurers might decline to issue a new policy for a home with a significant claims history.
• A clean report can help secure better insurance terms
• Buyers may negotiate price based on repair history
• Full disclosure of past damage is often legally required